Apple Analyst: Forget $700 Stock

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... the the ... it may be at all-time highs but ... Apple is still struggling to overcome its top spot this as the Wall Street ... was there is talk of perhaps yet another generation I Phones and production lines this summer ... Kao with an outlook for the tech giant has Colin Gillis is director of research and senior financial analyst BCG financial ... thinking is that the woman use up thank the much for bringing on my pleasure Simon ... so aam ... we got news of a ... potential new I phone but let's let the couple but some also in the news about big apology from Simcoe ... to China ... he was a cool move on now ... I think it needed to be done ... on a date ... to the China market place is one of the areas for strong growth in Apple wants to speak in that there's a lot of that class coming up from the media I will say they don't usually have much choice so it's dawned on they issue that you know in in Chinese on the onthe Bad dot CN website ... and ... the responses adults deposit into that ... building just to see how many gray market phones they get in that they'll be swapping out for a new products aam but that ... that that sidebar ... but as a sudden I was ... going to meet you think am ... Apple still scanning get it's mojo back and it was the that was the the the most beloved stall for such a while now clearly not the last summit last few months new one fundamental who bought the house so I was the first apology gets a timer for Apple Maps Irwin blocks north of two or thirty points so you know hopefully I'm that's not going to happen again with the second apology here in China ... in terms of the new I phone my gets widely expected to get a new app on every single year ... yet the issue is does it come into just come into law does come August the reports out the production is starting ... will be starting in two to ... now ... it will most likely be the same form factor is the con I phone five nine million I phone five best thing about what that don't support to the four S ... that's ... bad because the screen size is going to be you know small to the marketplace the markets moving towards those no closer to five inch screens with Samsung is done with the Galaxy S four but it's good because will help margins but unfortunately I think what you're seeing is ... that the price points in the entire space for smartphones and tablets are coming down because the growth is coming out of emerging markets and the people of a little bit less disposable income ... okay so what what does that mean for the stock price and a lot of a lot of people it been piling into the stock ended weeks of justice ... poverty seemed to love this stark it does this mean ... this doesn't go off all mean the the idea of seven hundred it all out Apple is is oversize me to think yes I think so you know in in my view right and a peanut its part is still above the largest if not the largest valued company on a U S listed exchange STX remember ... the absolute size of Apple is still quite a significant from a market cap perspective ... even though the ratios on valuation look appealing ... now ... looking for them and doesn't own a catch and it suggests putting ... the cash came in a sparkling ... well that's it that's a good course I absolutely not great where the dividend increase for the have much more cash they either a template ... or be returned to shareholders and they should be poignant more mature there were talks about the I want all this company out there called bubble that started doing that type of thing it's not the mom ... McGinley some of them on the company's combined reluctance it impacts me know and and and and people have criticized him for a public they have one of ... the week as it struggled to come to court over this ... time to try and make make things happen aam it doesn't look like it's going to happen when EDD this I was talk to lead to that ... the aisle ... or you can just get a hold on to know that somewhat back taxes and have to give return to shareholders but you don't expect outsize gains from the same unfortunate technology but you can become hot ... new become not very quickly ... addicted to make them away from its own in the coming week because I'm an aunt ... remember such emotion now black for a checkup they with every hope they were the coolest kid crying of lot yet and I'm now they are called non with nothing announcement the absolutely right and and many people think that the turnaround is not one of the costly for them ... now you know ... has Apple become one with out ... me do we do when we look into week two we will ... be fun to laugh and Syria ... it's it's it seems like a stretch now you can never rule about technology The Road site is littered with companies that that you know were were first movers and on the market and then because of the ownership position ... on appeal ... new entrants were able to come in you look upon me to look at Motorola he can look at Research in motion which is now called BlackBerry ... so it seemed like stocks right now let's see if Apple can innovate ... and and what what do you think I think ... you know I have that the high-end products I don't think that the Nets are going to get the mass killing the units that some people project but because I do think that will serve ... them for next for him to still be millions and millions of dollars in revenue for the moment and the nice gross margin but that may limit their growth